KPIT Technologies (KPITTECH) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew 20.1% YoY in constant currency and 19.3% in USD terms, led by strong performance in Asia, especially Japan, Korea, and India, and by Middleware and Powertrain segments.

• Net profit reached ₹2,037 million, up 44.7% YoY, including a one-time insurance claim gain; profit excluding one-time items grew 23.9%.

• Board approved appointment of Mr. Vijay Gokhale to enhance geopolitical expertise and passed an enabling resolution for a QIP capital raise up to INR 2.88 billion (up to 6% dilution).

• Profitability improved due to increased fixed price projects, higher offshoring, and robust margins, despite absorbing increments and ESOP costs.

• Management reiterated full-year revenue growth and profitability outlook, with continued investments in technology, markets, and strategic partnerships.

Financial highlights

• Revenue from operations for Q2 FY25 was ₹14,714 million, up from ₹11,992 million in Q2 FY24.

• EBITDA margin reached 20.8%, up 27.7% YoY, with EBITDA up 27.7% YoY.

• PAT stood at INR 2,037 million, including a one-time insurance claim profit of INR 450 million.

• Net cash balance at quarter-end was ₹9.68 billion after M&A and dividend payouts.

• Basic EPS for Q2 FY25 was ₹7.51, up from ₹5.20 in Q2 FY24.

Outlook and guidance

• FY25 revenue growth expected at the lower end of 18%-22% YoY constant currency guidance due to increased offshoring and cautious OEM spending; EBITDA margin to be at the higher end, above 20.5%.

• Pipeline remains strong, with large strategic deals in discussion, though timing of realization is uncertain.

• Focus areas include technology investments, AI adoption, Asia expansion, and strategic partnerships.